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Fixed or Open-Ended?: Labor Contracts and Productivity in the Colombian Manufacturing Sector

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  • Castellani, Francesca
  • Lotti, Giulia
  • Obando, Nataly

Abstract

Using the Colombian Annual Manufacturing Survey (AMS) between 2000 and 2014, this paper investigates the effect of labor contract modalities on firm productivity within the industrial sector through a structural model. We find that temporary workers contribute to firms’ labor productivity to a lower extent than permanent workers, while also having detrimental effects on TFP dynamics. We show this result is unlikely to be driven by the different skill composition of workers holding temporary contracts.

Suggested Citation

  • Castellani, Francesca & Lotti, Giulia & Obando, Nataly, 2017. "Fixed or Open-Ended?: Labor Contracts and Productivity in the Colombian Manufacturing Sector," IDB Publications (Working Papers) 8572, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:8572
    DOI: http://dx.doi.org/10.18235/0000859
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    Cited by:

    1. Arango, Luis E. & Castellani, Francesca & Obando, Nataly, 2019. "Heterogeneous labour demand in the Colombian manufacturing sector," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 53(1), pages 1-1.
    2. Boltz, Marie & Cockx, Bart & Diaz, Ana Maria & Salas, Luz Magdalena, 2020. "How does working-time flexibility affect workers’ productivity in a routine job?," ROA Research Memorandum 010, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    3. Tapias, J., 2021. "Temporary employment, informality, poverty and inequality," Documentos de trabajo - Alianza EFI 20047, Alianza EFI.
    4. Marie Boltz & Bart Cockx & Ana Maria Diaz & Luz Magdalena Salas, 2023. "How does working‐time flexibility affect workers' productivity in a routine job? Evidence from a field experiment," British Journal of Industrial Relations, London School of Economics, vol. 61(1), pages 159-187, March.
    5. Luis E. Arango & Sergio A. Rivera, 2020. "“Disemployment” effects of the minimum wage in the Colombian manufacturing sector," Borradores de Economia 1107, Banco de la Republica de Colombia.
    6. Arango, Luis E. & Rivera, Sergio A., 2022. "Moderate wage increases and flexible labour contracts to protect employment in Colombian manufacturing," Journal of Policy Modeling, Elsevier, vol. 44(3), pages 578-598.

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